What is a washout?
It is when the market has risen too much, and the main players want to shake off some indecisive retail investors to allow the price to continue rising. However, the methods of washout differ for different cryptocurrencies.
Altcoins: Directly plummeting, dropping 20%-30% in a short period, scaring you to death.
Quickly scare away the timid, making those looking to bottom-fish hesitant to buy in.
Bitcoin, Ethereum: Grinding time, the price doesn't drop much, but it also doesn't rise, just oscillating back and forth.
Making impatient people feel "this coin is worthless," leading them to sell, allowing the main players to wash out without needing to crash the price.
